July 18, 2012-- Greater Toronto REALTORS® reported 6,435 condominium apartment transactions during the second quarter of 2012 – down by 2.6 per cent compared to 6,609 transactions reported in the second quarter of 2011. New listings for condominium apartments were up substantially on a year-over-year basis, climbing by 19 per cent in comparison to 2011. “The condominium apartment market has been the best-supplied market segment in the GTA this year. Many condominium projects have completed over the past year and this has resulted in a substantial increase in listings and ultimately more choice for buyers,” said Toronto Real Estate Board President Ann Hannah. “The greater degree of choice in the condo market translated into a moderate rate of price growth compared to what was experienced in the low-rise market segment.” The average price for second quarter condominium apartment sales was $342,212, representing a 3.2 per cent increase over the same period in 2011.

“Sellers seemed to be well-aware of condo market conditions in the second quarter. On average, units were priced in line with buyer expectations, with apartments selling for 98 per cent of the asking price in less than a month’s time,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. 6,435 6,609 Second Quarter 2012 Second Quarter 2011

The Legendary Beverly House The Legendary Beverly House is sited on approximately 3.7 flat acres atop a private knoll 3 blocks from Sunset Boulevard. With original landscaping by Paul Thiene, entrance gates adjacent a two-story gate house open to a long private driveway ascending one of the city’s longest private drives to a courtyard fountain. Architect Gordon Kaufmann was commissioned by one of Los Angeles most important families to create his legendary masterpiece. Built of terra-cotta stucco, the H-shaped residence exhibits a perfect combination of Spanish and Italian style, with intricately carved ceilings and paneled walls, French doors, balconies, arched ceilings and floor-to-ceiling windows, which overlook the famous cascading waterfalls to the pool and the Venetian columns beyond the pool house.The Beverly House was built by banking executive Milton Getz. Marion Davies bought the property in 1946 for William Randolph Hearst, historical figure and most powerful publishing magnate of the 20th century, who moved there from San Simeon and lived at Beverly House where he spent the remainder of his life.The main level includes a 50 foot entry hall with loggia, a living room with 22 foot high arched and detailed ceilings, and the famed library with hand carved woodwork and staircase leading to second story wrap-around balcony and bookshelves. The billiard room contains herringbone parquet floors and a massive carved stone fireplace mantle from San Simeon. There is also a formal dining room, breakfast room, and family room with outdoor terrace accommodating up to 400 for sit-down dining.A garden level contains an art-deco night club, wine cellar, and one of two projection rooms in the residence. Another level contains spa facilities with a gym and massage room. The second story contains double masters, guest suites and staff accommodations. Additional features of Beverly House include a commercial kitchen, owner’s and staff offices, outside staff accommodations, lighted tennis court with indoor bar and media center, guest house above eight car garage, separate security cottage, separate two bedroom apartment and two story gate lodge with kitchenette and four bedrooms.In addition to hosting John and Jacqueline Kennedy during their honeymoon, Beverly House also played a character in the classic movies ”The Godfather” and ”The Bodyguard.”

Greater Toronto Realtors reported 3,679 sales through the first 14 days of July 2012, representing a 5.6 per cent increase compared to the 3,484 sales reported for the same period in 2011. New listings were up by 14.4 per cent over the same time frame. “Housing demand remained strong in the first half of July. Sales growth occurred in the regions surrounding the City of Toronto. In the City of Toronto, where sales were down, the relatively higher cost of home ownership likely prompted some buyers to purchase elsewhere in the GTA. Higher costs in the City of Toronto include the upfront payment of the additional land transfer tax,” said Toronto Real Estate Board (TREB) President Ann Hannah. The average selling price in the first half of July was $473,466 – up by 2.3 per cent compared to last year. On average, homes sold for 98 per cent of the asking price in 25 days – in line with July 2011. Price growth was strongest in the City of Toronto, climbing by 3.5 per cent to $496,645.“A better supplied market contributed to a slower annual rate of price growth in July relative to the first half of 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As buyers benefit from more choice in the second half of this year, expect price growth to slow to a more sustainable pace.”

The Bank of Canada kept its overnight rate target at 1 per cent on July 17th, 2012. Borrowing costs have been unchanged at this level since September 2010.The text accompanying the announcement reiterated many of the same points that were in the June 5th statement. This includes the wording of the bottom line, which leaves the door open to future rate hikes, but taken together with an overall weakening of the outlook pushes back the timing of any future rate increases.The Bank said that recent developments were pointing to a renewed contraction in Europe, while the deceleration in growth has been greater than anticipated in China and other emerging economies. The Bank also noted that the economic expansion in the United States was continuing at a gradual but somewhat slower pace.In Canada, the Bank expects those global headwinds will be offset by domestic factors, leading to moderate economic growth. Specifically, the Bank said, “consumption and business investment are expected to be the primary drivers of growth, reflecting very stimulative domestic financial conditions.”That said, these will be paced by the impact of lower commodity prices on Canadian incomes and wealth, as well as by record-high household debt. The Bank also added that housing activity is expected to slow from record levels.In light of all those factors, the Bank now expects the Canadian economy will grow by 2.1 per cent in 2012 and 2.3 per cent in 2013. That’s down from its previous projection for growth of 2.4 per cent this year and next. In contrast, the Bank now forecasts growth of 2.5 per cent in 2014, up from 2.2 per cent in the April Monetary Policy Report (MPR).The slightly weaker outlook for growth in 2012 and 2013 means it will now be the second half of 2013 before the economy returns to full capacity. This was previously forecast to occur in the first half of 2013.Core inflation is expected to remain around the 2 per cent target going forward, but total CPI inflation is now expected to dip noticeably below that level owing to the recent drop in gasoline prices, with futures prices suggesting this will persist for some time.The bottom line was unchanged from the June 5th announcement, stating that, “to the extent that the economic expansion continues and the current excess supply in the economy is gradually absorbed, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target over the medium term. The timing and degree of any such withdrawal will be weighed carefully against domestic and global economic developments.”So while the cuts to the forecast for economic growth and a weakened global outlook mean rates will likely remain lower for longer, the Bank is indicating it would still like its next move to be a rate hike, provided global and domestic trends play out as expected going forward.As of July 17th, 2012, the advertised five-year lending rate stood at 5.24 per cent. This is unchanged from June 5th, when the Bank made its previous policy interest rate announcement.The Bank will make its next scheduled rate announcement on September 5th, 2012.